They were a little lighter than estimates, but still up by about 1. 6 . This is on the heels of Dollar General, that really crushed it. Heres a negative. They might see earnings on the higher end for the full year. They do not see revenue on the higher end for the full year. They see 43. 6 billion. They had seen 43. 9 billion. That could be a marginal weakness. David stock is up in the premarket a little less than 1 . You mentioned Dollar General, which has a strong showing. Alix blew outcome a really. Raised their guidance, they see fullyear sales forecasts rising. They did point out there are a large number of sales in their lower margin products, so margins will be an interesting story for them, but i think it always is for the Dollar Stores. David absolutely. The beat on earningspershare for the Second Quarter, and comp sales were up 4 . You can see they are up about 6. 5 in the premarket. Alix this will add some early optimism in the markets. S p futures up by a solid 1 , over 2900. Euros dollar is weaker for multiple days now. You are looking at around the lowest level weve seen since 2017. It is a broadly stronger dollar story. We will get into the input cushions of that as we head through the program. Youre seeing a rebound in commodities and the equity market. The exception is italy. Did you know they sold 10 year bond yields today at below 1 . Below 1 . David i did notice that. Pretty extraordinary. Alix time now for Global Exchange to bring you todays market moving news from around the world. Joining us from hong kong is enda curran, in rome is gerald holton, from london, emma washington, from peggy collins. Commercese ministry of spokesperson said that china has means for retaliation, but the questions now should be about removing new tariffs to prevent escalation of the trade war. Enda curran has the latest. The importance of what the Commerce Ministry said was that they would not retaliate against americas retaliation against chinas retaliation of last week. Its a little bit head spinning, but that is where we are. They request that the existing tariffs be rolled back, and that sounds like something of a tall order given the trajectory of these trade negotiations in recent weeks. He did leave on the table the option that china can retaliate. He just didnt give any specifics around when they might do that. He said also those talks may still go ahead and september. He didnt confirm that they would come about said theres still some background work going on in terms of keeping that on track. Think one end, you could of that as a conciliatory message, but on the other hand, he was making clear china still does have the option to strike back if they want to. David thanks so much for being with us. Now we go to rome. Just at the content is set to just a piquant day just set conte is set to return as Prime Minister. Reporter it is really quite a striking turn of events here. Conte was given up is dead politically a week or so, 2. 0,ow we are seeing conte with the Prime Minister accepting a mandate from the president to form a government. He has about a week to put together a program to name potential ministers and iron out a few of the difficulties between the two parties that are going to back this coalition, particularly the role for luigi dimaio and the fivestar movement, who is Still Holding out on his desire to remain deputy premier, which may be a dealbreaker for the other side of the coalition, the democrats. Alix investors loving it. Yields are down under 100 basis points. Colten fromjerrold rome, thank you. Now we want to get the latest from emma chandra. Adding to a weaker economic picture we are seeing emerge for germany abid concerns about a Global Economic slowdown and the trade war between the u. S. And china, both of those things really impacting the German Economy as it is export oriented. He had a number of data points that have suggested we could be seeing the engine of the european economy had into recession. Second quarter german gdp declining. The german bund is bank expecting that ash the german bund is bank the German Bundesbank expecting that to happen again. What does this all mean . It puts pressure on the German Government to introduce some fiscal stimulus after years of running a budget surplus. Chancellor Angela Merkels government did indicate they aboutbe willing to set up 50 billion euros, worth 55 billion. David thanks so much. Now lets go to washington and peggy collins. There was some news made by treasuryuchin of the about ultra long bonds. It sounds like they may be back again. He floated this a while ago. Peggy thats right. Our colleague got an exclusive interview with the treasury secretary, and he said they are seriously considering these ultra long bonds. These would be bonds in the 50 year or 100 year length of time. That is really interesting, as you said, because this issue came up in the markets in 2017, and the markets gave it somewhat of a cool reception. When the market came rolling back earlier this month, we were surprised. The markets didnt really seem to gravitate to this idea, but given the low rates we are seeing out there and the fact that the u. S. Is still in positive territory when you look at the environment for negative yields out there, they could be possibly thinking that there could be an appetite for this from Pension Funds or maybe even sovereign wealth funds. Alix he also spoke of the dollar. He said that right now we are not contemplating intervention. Did we get any sense of when he actually might be considering an intervention . This has you said, been swirling in the markets about whether or not the Trump Administration would take the would take the very unusual step to intervene in the currency market. What we got from the interview was that he was saying not at this time, but that does still leave the question out there of not they ever would. We did also get information from the interview that they are really looking, if they were going to do it, to do it in coordination with the fed and potentially other countries. The question there is whether they would get any support for that, and that is a big . A big question mark. Alix thank you very much. I should point out that paul romer, and why you professor of economics and Nobel Laureate, will be with us coming up n professory of economics andu. Androfessor of economics Nobel Laureate will be with us coming up. David we have Steven Mnuchin saying we are going to talk, and china saying we are not going to retaliate for this latest round of increases. Vincent when you put it all in a nutshell, they havent said anything. They havent even agreed on talks coming up in september. Weve agreed to not retaliate on the retaliations of the previous retaliation. It does get your head spinning. We really dont have anything to hold onto just yet alix just yet. Why explain to me, then, markets move on this. One thing i think the market missed when trump did his tariff retaliation friday, notice that he didnt aim to increase them in september. He targeted october. To me, what that allows, it gives us a month to try and get the back to the table. Thats why the market, to me, is starting to express optimism, and rightly so. Now witht a point brexit and with trade where summer is over, this needs to be resolved. The market is asking for a isacle, but what you need populism to Start Playing pragmatically and get to a resolution, and i think it may happen. David lets assume it goes beautifully. What you get by october 1 . Paul what you get is a significantly higher stock market. But what do they do in the trade talks . Paul first of all, they are going to shake hands. They need to be able to leave a september meeting but what do tn the trade with a clear trend for the fact that you can get a resolution by the end of the year. Or at least maybe three to five months, but no longer. They are at a point now where they mustor at prove to the mars that they are very serious and that they are closer than what they are. I think realistically, youre going back to where you are at the beginning of summer, when that all blew up. If we get this deal back on the table, and what china wants is they are saying if we are going to do this, we want tariffs off now. That was there sticking point. Lighthizer is saying they want to keep them in play. That is what trump would have to give on, and in return he might get ip. Vincent the trump says that xi says we want all tariffs off. This is the one they say they cant fly on because Congress Wont allow it. Theres absolutely no motivation for schumer and pelosi to assist the president in getting this deal done prior to be november 2020 elections, so this is still a little bit of a hope. We hope they will go to the table. They may agree on something, but the idea that the democrats will back the president on this is zero. So we are still going to drag on to november 2020. We will see a lot of stock between now and then. This is an upside, but i think this is just a good day for the market. Alix which also brings me to tiein the conversation of markets in the last three days, which is how politics and central bankers interact. The latest is mary daly, symphysis go fed, spoke to mary daly, San Francisco fed, spoke to bloomberg. Heres what she had to say. Considerot political issues. I only consider the mandate weve been given, and when i approach my job, those are the things im thinking about. Alix she wants to look at just the economic data, but then you get some kind of trade deal. Bond yields are going to jump. What is going to happen to the dollar . How do you see the interaction to the downside . Paul i think the biggest risk to a trade deal, if it happens, and i know i am in a minority in my view here, i think the biggest risk is that the move for Interest Rates in august could reverse on a dime and the lelyet could be who caught the wrong way. I dont think we have a currency war. Have a trade war. What we seen from the fed is 100 right. This is not a situation where they will react to politics. They are reacting to what the Economic Impact of these politics are, and i think thats correct. Vincent totally correct. David the difference between those two, though. Alix its a sentiment thing right now. What politics is doing is impairing business decisionmaking, which is slowing growth. If you look at capex, the threemonth moving averages down next to zero. That is likely to slow the economy going into next year. The idea of putting trade tariffs, delaying them until december, is more than likely going to bring growth from 2020 into 2019, so we do stand to see Slower Growth in 2020. So will be fed proactively react to that . Its a reasonable possibility. Whether we get any sort of possibility things are going to happen, that would put the fed on hold. Its going to slow them down because the insurance isnt necessary anymore. Alix dennis also brings me to the conversation then this also brings me to the conversation bloomberg had with Stephen Mnuchin and long bonds. Right, heditions are will look to take advantage of longterm borrowing and execute on that. You take advantage of longterm borrowing, and then the government has more money, the fed buys more bonds, and you get more immediate fiscal stimulus. Paul i think it is a smart move. Alix would you buy a 100 year u. S. Treasury . Paul i wouldnt. [laughter] paul but mnuchin by background is a trader, and hes more than willing to sell it. I do believe the white house is looking more at the long end of the yield curve than it is at the dollar intervention right now. Ithink they are looking at and saying this could be a oneoff opportunity for many years. 100 years, who knows . But it also might be signaling that if we think the economy might be doing better next year, this could be the time. It is a view that i think theres a clear signal coming. David and it is a fair question when you buy a 100 year u. S. Bond. People are buying 100 year australian bonds. The money is out there. Alix argentina . That hasnt worked out so well. David but if people want to buy it, why wouldnt you sell it . Vincent perfectly correct. As a trader, i would be selling these with both hands. But they are trying to match assets and liabilities, and they havent been able to find something that really matches. Weve not seen the unintended consequent is of Interest Rates at this level spill into the Municipal Bond market. As pensions suffered to keep up with matching liabilities, eventually that weighs on cities theirates trying to match pensions and liabilities. At least what it appears in the short term, if you can borrow 100 your money at this level, i would personally be all over it, but i am not in a position of the u. S. Treasury. Alix i mean, im excited a 30 year mortgage i got a couple of years ago. David what about a 100 year mortgage . That would be interesting. Vince cignarella, thanks for being with us. Paul richards of Medley Global Advisors will be staying with us. British Prime Minister boris movedas moved to sen to suspend parliament as part of his deal to deliver brexit deal or no deal. Westminsterow from john mcdonnell, u. K. s shadow chancellor. Thank you for joining us. Give us a sense of what happens in this shortened parliamentary session . As i understand it, they will convene september 3. They have until september 10. Can you get legislation through that would stop a no deal brexit in that time . Guest potentially, yes, but it is going to be tough. Dont underestimate the difficulty of getting legislation through in that short time. That is exactly why Boris Johnson has exercised his dictatorial power of trying to prevent parliament from meeting long enough. So what is happening at the moment is the opposition parties brought themselves together, set up a group working through the detail of how we can achieve it next week. We are working now with senior conservative mps. Inisters come out aboutpress their outrage Boris Johnsons behavior. Right, the time is incredibly tight, so theres lots of opportunities that Boris Johnson could take to try to prevent it happening, but theres actually been a popular reaction against his behavior now, not just over his traditional opponents and other political parties, but popular reaction on the streets. We saw a demonstration yesterday announced within hours of his behavior being made public. Hundreds of thousands of people coming out in city after city in the country. David your leader Jeremy Corbyn said yesterday he thought it was time for a noconfidence vote. If you do not have the time to get through legislation to stop a no deal brexit, do you have time for a new confidence vote . Do you think the votes are there now, the way they werent with theresa may . Guest there could be time, but again, its going to be tight. We know how tough it is, both in terms of a legislative move and for a noconfidence vote as well. You struck on it straightaway, how things moved in parliament, particularly amongst conservative party members, in a way that they would support either a legislative move or noconfidence motion. By Boris Johnsons behavior, he seems to be welding together on alliance against him, even within his own political party. Im increasingly confident that we could have a majority of the legislative move, and maybe a majority on a noconfidence motion. Alix if parliament is suspended, are there contingency parliament sit elsewhere during that time . Guest well, theres a whole range of really Creative Ideas that have come forward about sitting elsewhere. Weve even had the archbishop of canterbury come forward with the idea of setting up a citizens assembly. Again, this is all about trying to reassert the rights, the democratic rights of the people of our country. As you know, we dont have a written constitution, but we do have constitutional practices that go back centuries. What Boris Johnson is doing his dictatorial he is dictatorially trying to rush over them. David weve been talking about the tide deadline, the october 31 deadline. If there were a noconfidence vote that had to go to a general election, could it be conducted in time for a new government to be brought in and time to beat that deadline to be brought in in time to beat that deadline . Guest again, it would be tight, but there still could be. Leaders, ourn european partners, have expressed the view that if there was to be some significant parliamentary move or a general election or a new referendum, they would look at an extension of that deadline. Theres a whole range of opportunities that are open to us now. The key thing, you struck the week. N the head, is next whether we can get legislation or other measures through parliament itself. If we fail, we fail. If it is as a result of what Boris Johnsons dictatorial overriding of our Traditional Democratic practices, i think that will bode well for the future and he will not have the marvel authority the moral the moral authority of a Prime Minister in this country. Alix thank you very much for joining us. We appreciate your time this morning. We do have some breaking news for you. Bennett goodmans from blackstone is going to quit the board, and senior the board and senior direction manager post at the end of the year. This is a huge shift. Hes been on the board since 2015. Hes definitely a staple when you thick about blackstone, and he will be doing his own Family Business now. David jso dissolving, basically. A big shift. Alix i wonder